16 minute read
SOLUTIONS SHOWCASE
A New Approach to LP Systems Deployment
After thousands of systems installations over the past several years and in the midst of an 1,800-store rollout this year, CONTROLTEK launched a new group christened Professional Services. Behind the unassuming name is a group of industry veterans who came up with a new approach to deploying and servicing EAS and RFID systems. The reason? “We want to make it easier for LP teams to get the technology they need, help them get the ROI they expect, and alleviate the most common pain points in the process,” said David Hardeman, director of client solutions delivery for CONTROLTEK. The new group has rolled out three new services that, according to Hardeman, will make life easier for loss prevention teams David Hardeman who are getting new EAS and RFID systems. With thousands of successful system installations over the years, CONTROLTEK has established itself as one of the most reliable systems deployment companies in the US, trusted by retail chains large and small. Tom Meehan
Direct Collaboration with Your IT Department
“Nothing can slow down the deployment of a new loss prevention system like the IT approval processes,” said Tom Meehan, CONTROLTEK’s chief strategy officer and chief information security officer. “Fortunately for our customers, we’ve been through the process many times on both sides of the fence—retail side and the solutions provider side. It was a logical step for us to set up a group that will work with the customer’s IT department directly, rather than expecting the LP team to act as a go-between.”
According to Meehan, IT departments often have lengthy approval processes for new systems, which can include piles of paperwork that needs to be filled out. “Security is their priority, so this is understandable. But this also creates a burden for the LP department that has to fill out all that paperwork and go through the process while at the same time trying to do their regular work,” said Meehan. “Our Professional Services folks speak the same language as your IT department and can work with them side-by-side to assist in the deployment of your new solution so that you can concentrate on your work and not worry about the technical side of things.”
ROI Analysis and Documentation
To help LP departments win the approval and budget in the boardroom, CONTROLTEK now offers a service that uses industry data to help create a substantiated ROI story. “Through use cases and ROI calculations, we can help your organization understand how the investment will impact the bottom line in expected and often unexpected ways—from lower shrink to better inventory management, merchandise availability, and the
resulting sales lift and customer retention,” said Steve Sell, CONTROLTEK’s vice president of global sales and marketing. According to Sell, this analysis and documentation will help LP leadership be better prepared when their requests for new systems are challenged. “At the Steve Sell same time, we want to elevate the LP leadership teams in the eyes of the rest of their organizations by showing that loss prevention isn’t just about catching the bad guys; it is there to provide a sales lift, an improved customer experience, and ultimately a positive impact to the bottom line.”
Associate Training
“We know that one of the keys to a successful adoption of a new solution is training,” said Rhett Asher, CONTROLTEK’s director of business development. “This is why our Professional Services group is placing a great deal of emphasis on the training of our customers’ associates.”
According to Asher, CONTROLTEK works directly with loss prevention teams or training departments to develop materials on proper application and removal of tags and use of systems and other solutions being deployed. This includes videos, cheat sheets, webinars, and a team that can answer questions as they come up. “The bottom line is that unless store associates know how to handle the new solution to its full potential, the LP team will
not fully realize the ROI it expects. Our goal is to get store personnel up to speed as quickly as possible.” CONTROLTEK’s new Professional Services group does not aim to revolutionize the LP world. But it has already proven that a new focus is needed when it comes to LP technology, one that places emphasis on saving time and headaches for LP professionals. While the company continues Rhett Asher to innovate its product line and offer new solutions every year, the real innovation may prove to be the new processes that make LP professionals’ daily lives easier.
After thousands of systems installations over the past several years and in the midst of an 1,800-store rollout this year, CONTROLTEK launched a new group christened Professional Services. Behind the unassuming name is a group of industry veterans who came up with a new approach to deploying and servicing EAS and RIFD systems.
CONTROLTEKS’s First Time Right Program boasts an impressive success rate of 95 percent. A system installation, like this New York location of a major retail chain, counts as First Time Right if four conditions are met: (1) CONTROLTEK technician arrived on time, (2) the equipment was already on site, (3) the work was completed and everything worked as expected, and (4) the customer accepted the install by signing off—all on just one visit.
Supermarket Leverages CAP to Justify Security Budget, Show ROI, and Reduce Shrink by 15 to 20 Percent
Using the CAP Index® Custom Crime Risk Modeling solution, a large supermarket chain was able to identify at-risk locations, reallocate and prioritize resources, quantify operating costs, reduce loss, and improve safety perceptions across 2,800 stores nationwide.
The Challenge
With 74,000 employees and 14.5 million customers a week, there’s no one-size-fits-all solution that could provide ample security to all locations and still fit within a fixed budget. The goal was to optimize, prioritize, and justify the company’s security investments—equipment, use of guards, and so forth—to maximize budget and the security of customers and employees.
The Solution: Custom Risk Modeling from CAP Index
Successfully allocating resources starts with knowing which stores are at risk. CAP Index is the industry-leader in forecasting crime risk by location. By combining CAP’s data with the supermarket’s own internal incident data, the company created a truly customized risk model that was specifically tailored to its corporate goals and objectives. This allowed it to accurately rank its locations and identify which were at risk.
Results Highlights
■ Guard & Equipment Cost Savings. Hard data justified removing guards from low-risk stores. ■ Quantifying Operating Costs. The model established the cost-to-operate in an area to serve as a baseline for identifying locations performing below or above average. ■ Prioritizing Investment and Reducing Loss. Leveraging the insight from the model, a pilot program was instituted that showed by upgrading specific equipment in elevated risk locations, shrink is reduced by 15 to 20 percent. ■ Reduced Crime Incidents. After ranking stores by CAP risk and reallocating security resources accordingly, the company found that instances of crime reduced by 50 to 60 percent. ■ Improved Safety Perception. Reduced crime makes locations nicer for both employees and customers.
After implementation, personal safety perceptions have improved by 35 percent. ■ Optimized Employee Training. To get employees to help deter crime instead of simply react to it, the model prioritized a behavioral training program at elevated risk locations.
“By utilizing a leader like CAP Index, we are now using accurate, objective data to take a lot of the guesswork out and really deliver a smarter, safer, and more costeffective security solution that has tangible ROI. I have no doubts this will be an industry standard practice in a few years or even sooner.” - Supermarket LP Executive
Bottom Line
“By utilizing a leader like CAP Index, we are now using accurate, objective data to take a lot of the guesswork out and really deliver a smarter, safer, and more cost-effective security solution that has tangible ROI. I have no doubts this will be an industry standard practice in a few years or even sooner,” said a loss prevention executive at the supermarket chain.
To discuss how CAP Index can help your organization, email askcap@capindex.com, call 800-227-7475, or visit capindex.com.
OUTSMART CRIME
Reduce Retail Theft with LockUp
Currently in its twenty-fifth year, the National Retail Security Survey continues to offer not only insightful research into retail crime but also successful countermeasures. Key findings from the most recent survey show that the impact of shrinkage continues to be sizeable, with 48.1 percent of retailers reporting increases in inventory shrink. Just one year ago, employee theft was the fastest-growing crime in America. The Jack L. Hayes International Annual Retail Theft Survey also found that one out of every twenty-seven employees was apprehended for theft in 2016.
Now for the second year in a row, shoplifting has surpassed employee theft in inventory shrink, and the average loss per incident has increased. While technology is increasing in use as a deterrent for shoplifting, more advanced technology has not yet caught on. Furthermore, technology and hiring practices for deterrence of dishonest employees has dropped, reflecting the change in shrinkage concerns from employee theft to shoplifting.
Proven Methods
With changes in technology and trends shifting so quickly, what proven methods empower retailers to attack shrinkage from both sides of the cash wrap? Digilock’s® patented technology and responsiveness to market demands ensures its out-of-the-box solutions are simple, versatile, and most of all, secure.
LockUp® delivers a top-of-the-line employee locker complete with the security of a shared-use keypad lock. The locker is manufactured from heavy-gauge, powder-coated metal to withstand heavy use in the most demanding environments. It is delivered ready-to-use, fully assembled with a pre-programmed electronic keypad lock. Options include a clear polycarbonate door, giving store managers the ability to see the contents inside the employee lockers, contributing to internal theft prevention.
The procedure is simple: store employees gain access to their lockers with the entry of a self-selected four-digit code, and management controls and audits the lockers by using an electronic manager key, which also offers external power. LockUp was designed specifically for the retail industry, where the shift-based environment and high turnover led to specific management and loss prevention needs. By streamlining electronic management for the retail environment, LockUp offers benefits and savings in reduced initial investment, real estate, and time.
Innovative Uses
Although LockUp was designed with employee storage and internal theft in mind, one retailer saw LockUp as a way to deter the increase in shoplifting incidents in high-risk, high-crime areas by adopting a common practice used in Europe. By placing lockers at major entrances, the stores provide a service to their customers—giving them a secure but temporary space to store backpacks and large bags while shopping. The stores are also able to limit concealed theft by being able to remove backpacks and duffle bags from the sales floor. In fact, within the initial testing phase of one month, merchandise theft via concealed backpacks and duffle bags decreased to almost nothing. In addition to reducing internal shrinkage resulting from employee theft, Lockup has proven to be a viable solution for retailers seeking to reduce incidents of shoplifting within their stores. For retailers, LockUp lockers, backed with the expertise and innovation of Digilock’s simple-to-use and easy-to-manage storage system, strengthen loss prevention strategies while enabling management to take proactive steps to ensure merchandise is not lost or stolen, whether from the back-of-house employee storage or front-of-house shoplifting. Through Digilock’s commitment to innovation, LockUp has proven itself to be a cost-competitive solution for secure personal storage and shrink-reduction.
Visit lockup.com for more information.
Top Five Secrets for Making the Outsourcing Decision
So far 2017 has been a very challenging year for retail companies. The number of retail companies that have filed for bankruptcy, closed locations, or dramatically reduced their budgets are clearly shaping this year to be one of the worst years in retail.
The challenge most retailers face is simply a lack of resources available to sustain a proactive LP program. Even maintaining a consistent LP presence in all store locations can be a stretch as most field personnel are used to immediately address cases of theft or other critical areas of concern.
If you’re an LP director working for a challenged retailer that is closing stores and comps are flat, you have an obligation to help create the most profit you can. You can’t just sit back and hope it passes. You must become a true partner in profitability, take some leadership, and take some risk.
A consideration for retailers is to outsource portions of their loss prevention programs or their entire loss prevention function. While this is certainly a consideration for some retailers, outsourcing is not a one-size-fits-all solution. For example, consider your current shrink. If it’s on par or below the national average, outsourcing may not be for you. However, if your shrink rate is an immediate concern, also consider your size. Outsourcing works best for smaller retailers that are geographically dispersed but have limited internal resources.
If you’ve determined that outsourcing is the best option for you, the next challenge is to pick a partner. As with any outsourced vendor, the decision to move forward with such a critical portion of your business should be based not only on what types of services they can provide, but also how they demonstrate an exact understanding of your operations and needs.
Here are the top five secrets to consider before making the choice to outsource: 1. Coverage. Does the provider have adequate and reliable resources near all of your store locations? If they only cover a small percentage of your store locations, the expense for them to travel may be just as much as sending your own team. 2. Staffing and Certification. Are all staff, including those in field locations, full-time employees? This ensures the accountability and consistency in delivery of your services. Also, as this vendor will act as a primary or secondary “face” of your department, ensure that all members are properly trained and certified. 3. Culture. Communication with your internal team and a demonstrated understanding of your business drivers are crucial
to your program success. If they do not demonstrate a thorough understanding of any of these areas, the partnership will not be a success. 4. Insurance and License. Does the vendor have all the appropriate insurance coverage, are they properly licensed, and how do they demonstrate it? 5. Measurement. The vendor should be able to quickly and clearly demonstrate other cases of reduced shrink, improvement in earnings, and heightened program awareness at all associate levels.
While outsourcing is not the best option for all retailers, for some, it has provided the opportunity to shift the loss prevention program from a reactive to a positive state, leading to heightened associate awareness, reduced shrink, and improved earnings.
Your LP Partner
LP Innovations is the only nationwide, single-source provider of loss prevention solutions for the retail industry with a dedicated full-time field staff. Since its inception in 1998, LP Innovations has provided its rapidly growing customer base with a variety of innovative solutions proven to protect profit and reduce shrink. Its expert team is dedicated to maximizing your profitability through proven shrink reduction programs, uncompromising customer service, and its unique ability to seamlessly integrate into diverse business cultures. LP Innovations’ services include: ■ Compliance and Control Audits ■ Investigative Consulting ■ Exception-Based Reporting and Analysis ■ Training and Awareness Materials ■ Mystery Shopping ■ Loss Prevention Consulting ■ Location Risk Assessments ■ Civil Demand and Recovery
From a nationwide field staff of loss prevention auditors and certified investigators to a dedicated staff of exception-based reporting analysts and experienced program directors, LP Innovations provides its customers with best-in-class services, helping to build and maintain stronger and cost-effective loss prevention programs. For more information about our services, visit lpinnovations.com.
Open System Design Protects High-Theft Products While Enhancing the Customer Experience
When combating shrink, it’s important for retailers to pursue common-sense solutions in their stores. Many loss prevention products in the market today are closed systems that keep merchandise under lock and key, which can have as dramatic of an impact on sales as product theft. Also, many loss prevention products are limited in functionality. This issue is where Southern Imperial’s patented SONR System comes into play. The SONR uses an open system design, allowing shoppers to remove and replace the
product without assistance while simultaneously drawing associate attention to activity. Moreover, the SONR is a multitiered security solution that allows retailers to control the level of security for their products.
Multiple Levels of Security
Shoplifters are discouraged from theft as risk increases. The SONR system can add multiple levels of security as the need arises. Its basic level of security starts with the SONR Hook. Merchandise removed from the hook by raising the attached label holder triggers the initial response. Once raised, a warning beep is emitted to alert store personnel that there is activity in the area. For the second tier of security, an Echo Box can be added into the system to mimic all alerts. The Echo Box, which is installed up to fifteen to twenty feet away, will relay all alerts on the floor to a central point for store associates.
Unlike other security products, no deactivator is required to reset the alarm. The system Echo Box can be quickly reset as well. The SONR System can be scaled to handle multiple store product lines at a time. The Echo Box features multiple frequencies options that allow store associates to assign different sounds to specific product lines to give them an indication of where activity is taking place in the store.
For retailers requiring an additional tier of security, the SONR System links into more existing security and communication systems to suit store needs. The SONR Echo Box features different signal output ports to integrate with existing security systems, such as an overhead intercom system or public video monitor (PVM). For example, in addition to the SONR alarm, the Echo Box can also instantly
activate a video monitor showing the effected retail area. These measures work to prevent theft, but also keep all items open and available to potential shoppers.
Placing merchandise behind lock and key (closed systems) has been shown to decrease sales by as much as 38 percent. SONR Hook provides retailers with a viable solution for displaying valuable items without losing them to shrink. It keeps product visible, accessible, and most importantly, shoppable.
To find out more information on Southern Imperial and the SONR Hook, please visit intelligentlossprevention.com or call directly at 1-800-747-4665.
